It has been ten days since my last blog post. I did not realise that. I had to travel to the United States early Sunday morning on Oct. 23 and returned on Oct. 28 to Singapore. Been to Charleston in South Carolina. Time to get back to blogging which is a good repository of all things important or interesting or both.
Came across this story on how companies manage expected earnings. It has been meticulously put together. It confirms our suspicions that the game is manipulated or rigged. Media too – which reports these stories of gaming – eventually only reports how companies beat expectations. The comparison is not with the past nor is it about the analysis of the trends in top line and bottom line numbers. So, the media hunts with the hound and runs with the hare in these matters. Nonetheless, the Wall Street Journal story of August 4 is well researched and well put together. It is recommended reading.
This WSJ story that came a day earlier is consistent with the game of expectations management. Companies that use non-GAAP earnings measures are more likely to issue earnings restatements than those that do not.